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Transcript

Markets Look Strong But a Pullback Is Coming: Key Levels to Watch

Stocks have rallied for 9 trading days so a pullback is overdue but that could be a huge buying opportunity

Intro:

Markets appear to have bottomed, and we’re now testing or approaching all-time highs. But as we often say: bottoming is a process—and topping is too. This week, signs point to an imminent daily cycle decline across assets, but the broader trend remains bullish.

This week’s update includes:

  • $BTC’s path toward its 4-year cycle top

  • SPY and QQQ late in their daily cycles

  • Gold’s ongoing 8-year cycle setup

  • Bearish reversals in natural gas
    Let’s get into it.


🪙 Bitcoin (#BTCUSD): Early in the Move Toward the Long-Term Top

  • Currently in Week 5 of the new weekly cycle

  • Month 30 of the 4-year cycle; previous tops came in Month 35–38

  • Price consolidating near recent highs; forming a bull flag

  • Daily cycle is ~41 days old → a pullback is overdue

  • Key support: $100,703 (weekly low)

  • Break below, then recovery = false breakdown setup

Bitcoin still looks like it could rally into the end of 2025, but expect volatility in the short term.


💻 Ethereum (#ETHUSD): Fading After a Brief Lead

  • ETH briefly outperformed $BTC, but has lost relative strength

  • Consolidating in a messy bull flag

  • Weekly structure = Week 5, same as $BTC

  • Support to hold: $2,317

  • Monthly swing high risk if price breaks $2,400

Caution is warranted here. Structure is weaker than Bitcoin for now.


📊 SPY: A Pullback Is Coming—And That’s Healthy

  • Day 28 of the current daily rally

  • Past daily cycles peaked at Day 23–30

  • Gap support: $577–$567

  • Weekly cycle: Week 5, early in broader rally

  • Daily swing high would trigger below $589.28

Expect a pullback soon. Use it to reload, not panic.


📈 QQQ: Stronger Than SPY, But Same Setup

  • Day 28 of rally

  • Gap support: $501.48–$490

  • Daily swing high forms below $517.10

  • Monthly swing low remains active as long as price stays above $479

Trend is strong—but late. Stay nimble here.


🏛️ DIA (Dow): Finally Confirmed a Monthly Swing Low

  • Monthly swing low confirmed above $423.44

  • Daily swing high forms below $422.50

  • Structure is improving, but still trailing QQQ and SPY


🔧 IWM (Small Caps): Still Holding

  • Monthly swing low holds above $203.33

  • Daily swing high would activate below $207.78

  • Rotation into small caps still unfolding—watch for relative strength


🧠 SMH (Semiconductors): Key Indicator for the Broader Market

  • Monthly swing low confirmed above $216.61

  • Weekly high set last Wednesday; failed to break it Friday

  • Watch $245.60 → break below confirms daily swing high

  • Break above $247.61 would resume uptrend

  • SMH often leads—this stall may be the earliest warning


🌍 DXY (Dollar Index): Top Likely In

  • Weekly cycle: Week 4

  • Daily cycle: Day 19

  • Break below 101.51 = daily swing high

  • Break below 101.27 = weekly swing and likely weekly cycle top

Still in a long-term downtrend. This bounce looks temporary.


📉 TNX (10-Year Yield): Bullish But Range-Bound

  • Weekly cycle: Week 5

  • Daily cycle: Day 18

  • Inside week likely: $4.55% / $4.39% range

  • Still in long-term consolidation, but short-term strength remains


🛢️ Oil: Bottoming—But Still Unconfirmed

  • Trying to hold above $55.16

  • Weekly inside range: $63.86 / $60.61

  • Need a break above resistance to confirm this double bottom

  • Bullish setup forming, but still at risk


🟡 Gold ($GC): Waiting on a Cycle Low

  • Weekly cycle: Week 19, now moving into Week 20

  • Weekly swing high confirmed below $3,260

  • Possible daily swing low forming above $3,240

  • Monthly chart: Month 33 of 8-year cycle → potential top late 2025

  • Support zone to watch: $3,168

Pullback still in progress. Use daily swing low as re-entry trigger.


🪙 Silver ($SI) and $GDX (Miners): Follow Gold’s Lead

  • $SI is weaker, stuck in $33.68 / $31.60 range

  • $GDX topped in Week 16, now consolidating

  • Key support: $40.26

  • Break below, then recovery = potential bullish setup

Miners will follow gold—wait for confirmation.


🔥 Natural Gas ($UNG): Bearish Reversal

  • Weekly cycle likely topped on Week 3

  • Weekly bearish outside candle printed

  • Daily cycle: Day 16 → more room to decline

  • Break below $3.34 confirms top

  • Only bullish case: close above $3.40 to form a daily swing low

Short-term downside likely. A flush would reset the chart for another entry.


✅ Final Takeaways:

  • The market looks like it’s bottomed, but short-term pullbacks are due

  • Daily cycle highs are forming across BTC, SPY, QQQ, and yields

  • These pullbacks = opportunities—not trend reversals

  • Gold, miners, and natural gas still need to base

  • Bitcoin remains the cleanest long-term trend


📌 Key Levels to Watch:

  • $BTC: $100,703 → watch for breakdown + recovery

  • $ETH: $2,317 support | $2,400 = swing high risk

  • $SPY: $589.28 = swing high trigger | $577–$567 gap fill

  • $QQQ: $517.10 = swing high

  • $SMH: $245.60 support | $247.61 breakout

  • $GC: $3,240 swing low trigger | $3,168 support

  • $UNG: $3.34 breakdown risk

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